The chairman of the Pension Protection Fund (PPF), Lawrence Churchill, has hit back at critics of the organisation by saying that "the only thing that is unsustainable is to not have a protection fund at all", at the Pensions Age spring conference.

Churchill told delegates at the event on 17 April at the London Stock Exchange that he is "not kept awake at night worrying about the sustainability of the PPF". He said that the "function of lifeboats is to operate in storms not calm waters". He added that should problems arise in a few decades time, there would be more than enough time for policy responses.

These comments come following recent criticism from the Occupational Pension Trust (OPT) that faced with an increasing strain on operational capacity, poor investment return and a shrinking levy-payers base, the PPF will be left with one of three options: to increase the levy, ask the Government for help, or cut benefits to members.

Churchill explained that there are a number of factors which affect the PPF, including solvency, liabilities, the reducing defined benefit (DB) population and scheme specific funding. "The PPF is a collective responsibility", he continued, "starting with employers".

"The key question seems to be: when is a good time to fund your pension? Too often it seems now is not a good time, and that's unsustainable too."

- Pensions Age April 2009

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